Government of Meghalaya

Budget Speech

1998 – 99

By

Shri B. B. Lyngdoh

Finance Minister, Meghalaya

31st March, 1998

Hon'ble Speaker Sir,

I rise to
present the Budget Estimates for 1998-99.

We have taken over
the reins of Governance at a crucial time when we are on the threshold of the 21st
Century, and entering into the second year of the 9th Plan and the
last two years of the system laid down by the Tenth Finance Commission.
the Budget Estimates 1998-99 do not merely state the Plans and projects
for 1998-99 but also reflect our approach to the development of the State in the
next 5 years.

Last year, we
completed 25 years of creation of Meghalaya. Though we have firmly established
our political identity, we have a long way to go in achieving our goals of a
progressive society capable of harnessing the full potential of our people
and rich natural resources. To achieve this, we require peace, prosperity,
health and education. Let us recall the words of Prof. G.G. Swell in his
speech in the Parliament after achieving Statehood, "Meghalaya will be an
island of peace and a patch of beauty in the North East". These priorities
will be incorporated in the 9th Plan in order to give a new direction
to the Annual Plans starting from 1998-99.

This will call for
sound management of State Finances. It is pertinent to mention here that in the
recent past the State enjoyed, a reputation in the Planning Commission of being
the best financially managed State. Efficient management of State finances and
avoidance of unsustainable deficits by raising additional resources and cutting
non-essential expenditures under Non-Plan Revenue by enforcing strict
economy measures will be pursued. This will enable the Government to provide
adequate funds for the State Plans and State's share in Central Sector,
Centrally Sponsored Schemes and North Eastern Council schemes and thereby
optimize Plan investment particularly in crucial sectors of Health, Education,
Agriculture, Power and Rural Development.

Before presenting
the Budget Estimates 1998-99, I will briefly refer to the current status of the
National and State economy, review the performance of important Departments and
outline the tasks ahead.

NATIONAL ECONOMY :- Union Finance Minister has
indicated in his interim Budget Speech that there has been an over all slow down
of the economy in the current year. The Gross Domestic Product growth rate will
be about 5% and below 7.5% of 1996-97. The target of restricting the fiscal
deficit to 4.5% of the Gross Domestic Product will not be met and the actual
fiscal deficit could be in the region of 6% of the Gross Domestic Product. There
are worrying signs of slump in agriculture and industrial sectors. The
industrial growth rate during April-Dec.,1997-98 is estimated at less than
5%, the lowest since reforms began. On the positive side, inflation is likely to
average 5% in 1997-98 which may be the lowest in last 12 years and the
debt service ratio, the indicator of external economic relations is estimated at
below 20% compared to 24.3% in 1995-96. As far as State finances are
concerned, the decision of the Government of India to transfer 77.5% of the
total yield from Voluntary Disclosure of Income Scheme (VDIS) in 97-98 is a
cause for happiness. We would urge Government of India to adopt a special policy
for the North Eastern Region. In this context, we welcome the decision to revamp
the North Eastern Council and to create a separate Ministry for the North
Eastern Region and we do hope that "the better face" of economic
reforms that the Prime Minister has promised would cover the North Eastern
Region also.

STATE ECONOMY :- Though predominantly rural with 81.5%
of the population living in the rural areas, the contribution of the
primary sector was 32.13% of the Net State Domestic Product in 1995-96,
while secondary sector comprising trade, transport, banking etc contributed
13.51%. The tertiary sector made a significant contribution in 1997-98. During
1991-96, a gradual but somewhat uneven growth in per capita income has
been noticed at current.

Prices namely
8.50%, in 1991-92, 6.22% in 1992-93, 12.62% in 1993-94, 9.01% in 1994-95 and
6.62% in 1995-96. A similar trend in growth of Net State Domestic
Product has been observed. A major development in the economy has been the
expansion of the Mining sector. In 1996, the output of coal and limestone
was 31.23 lakh MT and 4.36 lakh MT respectively. The picture is different on the
employment front as the number of job seekers in the Live Registers of
Employment Exchanges is over 27,000 and points to a need for a strategy to
restructure the core sectors of the economy and greater productivity.

PLANNING :- An outlay of Rs. 2700.00 crores was
proposed for the 9th Five Year Plan of Meghalaya which is still under
active consideration of the Planning Commission. In the first year of the 9th
Plan, 1997-98 an outlay of Rs. 382.00 crores was originally fixed.
However, due to resource constraint, the revised outlay will be Rs. 260 crores.
The tentative plan outlay for 1998-99 is Rs. 400.00 crores. the tentative
intersectoral outlay is indicated in Annexure-I.

AGRICULTURE :- Since agriculture continues to be
the main stay of our people, its development is the most critical factor in the
economic growth of the State. The target of food grains production
for 1998-99 is 1.85 lakhs Mt against the anticipated production of 1.77 lakh Mt.
for 1997-98. The target for potato production is 2.25 lakhs Mt. during
1998-99. Development of Commercial crops like ginger, cotton, jute, mesta and
mushroom as well as horticulture have been stressed and a separate
Directorate for Horticulture has been set up. The National Watershed Development
Project for Rainfed areas (NWDPRA) is being implemented in 8
Micro-Watersheds in all districts under a Central Sector Scheme covering 4,000
hectares. The Meghalaya State Agricultural marketing Board has set up two
Principal Regulated markets at Mawiong and Garobadha. The transactions at
Mawiong have begun in a promising manner. The market at Garobadha has been
commissioned in October, 1997.

ANIMAL HUSBANDRY AND VETERINARY :- The Department will
continue to create and upgrade infrastructure for increasing production of meat,
milk and eggs. The production target for 1998-99 has been fixed at 29,000 Mt of
meat, 660,00 Mt of milk and 81 millions eggs.

To generate
additional employment, besides providing training to people, incentives in the
form of subsidy are given for implementation of dairy, poultry and piggery
schemes for rural farmers, dairy farming and broiler production schemes for
educated unemployed youth. All these schemes will continue in 1998-1999.

COOPERATION :- The growth of cooperative movement has
a critical role in promoting agriculture and allied activities. During 1997-98,
new cooperative Societies have been registered. The cooperative financing
institution like Meghalaya Cooperative Apex Bank has been brought under the
purview of the Prudential norms for Non-Performing Assets and provisioning for
Bad Debts with effect from 31.3.97. It has, however, been able to maintain last
year's record of recovery of current overdues and Credit Deposit Ratio (34.87%)
in the current year, while in the consumer sector a turnover of Rs. 564.95 lakhs
could be achieved by cooperatives last year. Procurement of cotton in the
current season has been started by Garo Hills Cooperative cotton Ginning and Oil
Mills Ltd. in association with Cotton Corporation of India, cooperatives of
other types like transport, dairy, handloom, women cooperatives etc are also
making slow but steady progress. Schemes for the Ninth Five Year Plan have been
formulated for achieving sustainable growth giving priority to credit,
marketing, processing, dairy, handloom and women cooperatives in that order.
Some new schemes are also proposed to be taken up during the Ninth Plan, of
which cleansing of balance sheet of State Cooperative Bank/Urban Bank is the
most notable means for neutralizing the adverse effect on the cooperative system
as a result as a result of application Non-Performing Assets norms.

FOREST AND ENVIRONMENT :- An area of 26,917 hectares
has been afforested through various afforestation schemes. The areas afforested
were either degraded forest or abandoned jhum lands. The activities towards
wildlife conservation, social forestry development, protection of forest
resources, maintenance of plantation, etc have been taken up. Under the Minimum
Needs Programme, during the first four years of the eighth plan period,
free distribution of 364.31 lakhs seedlings to the people have been undertaken
and the likely area to be planted by the seedlings will be 18216 hectares
approximately. Development activities and protection of wild life in the
national park and sanctuaries will continue to be intensified in 1998-99.

SOIL CONSERVATION :- Conservation of soil
and water resources is vital for sustainable development as it protects
the soil cover against erosion caused by rainfall and felling of trees and
thereby helps the farmers to obtain higher yields. To achieve these objectives,
the Soil Conservation Department has been implementing several schemes to wean
away the farmers from shifting (jhum) cultivation, water shed
management schemes and for afforestation of degraded land. In
addition, the Department has been promoting cultivation of cash crops and land
development works.

COMMUNITY AND RURAL DEVELOPMENT :- The Community and
Rural Development Department continues to play an important role in the process
of accelerating the economic and social development of rural areas with a view
to increase the income levels and quality of life of the rural people. The
important programmes of the Department are Integrated Rural Development
Programmes, Jawahar Rozgar Yojana, Employment Assurance Schemes, and National
Social Assistance Programme (old age pension), Integrated Rural Development
Programme has been given a high priority with an outlay of Rs. 400 lakhs during
1998-99.

To generate
additional gainful employment to the unemployed and under employed persons in
rural areas, besides Jawahar Rozgar Yojana, Employment Assurance Scheme is being
implemented as Centrally Sponsored Scheme to provide 100 days of assured
employment during the lean agricultural seasons to the rural poor people.
Special rural works programmes and construction of rural roads programmes have
been taken up earnestly.

INDUSTRIES :- To promote growth of industries, the
State has adopted a policy of providing infrastructure and package of
incentives. The tentative annual Plan outlay for 1998-99 is Rs. 1100.00 lakhs.
The allocation for large and medium industries and small scale industries are Rs.
900.00 lakhs and Rs. 200.00 lakhs respectively

The major effort
will be to develop the Infrastructure or setting up of industries by
concentrating on the Export Promotion Industrial Park at Byrnihat and the growth
centre at Mendipathar in East Garo Hills.

Priority would
also be given on generating employment. The Department has provided funds
for training schemes which would assist entrepreneurs in acquiring
skills for setting up of their own small ventures. The employment for educated
unemployed youth will be continued through various Central Schemes such as the
Prime Minister's Rozgar Yojana.

MINING AND GEOLOGY :- The Department efforts towards
exploration of economic minerals are continuing. During 1997-98, exploration
programmes have been taken up including exploration of ground water potential
and geo-technical studies. During 1998-99, a tentative outlay of Rs. 150.00
lakhs has been proposed. Mineral investigations under North Eastern Council
scheme during the 9th Plan period would continue.

SERICULTURE AND WEAVING :- Sericulture and
Handloom Weaving are the two important cottage industries of the State which
play an important role in uplifting the rural economy. The Department has
organized 62 Block plantations, 9 numbers of chowky rearing centres and 5 Eri
spinning centres have been set up to arrange for supply of chowky weavers
and for training of local spinners respectively. During 1998-99 the Department
propose to intensify the raining programmes to the educated unemployed youth
under the Entrepreneurship Development Training Programme for self employment.
The Department will take up a project for modernization of handloom to enhance
the output of quality fabrics at the private weavers level for raising
weaver's income. The Department also intend to implement the integrated
muga and eri project and also the Micro-Sericulture Project of the Central
Silk Board to promote the silk industry in the State.

POWER DEPARTMENT :- The tentative Plan
outlay of the Meghalaya State Electricity Board for the year 1998-99 is Rs.
5611 lakhs.

During the 9th
Plan Meghalaya State Electricity Board proposes to take up renovation and
modernization of its existing generating units with the Overseas
Economic Cooperation Fund from Japan. Construction of 2x18 MW
Leishka Hydel Electric Project will be taken up for which the Project Report
has been prepared. The construction of 132 kv S/C line from
Umiam-Umtrew Stage IV Hydel Electric Project to State Border towards Guwahati
has been practically completed and may be commissioned soon. hep

Harnessing of
Non-conventional sources of energy especially solar energy is continuing in the
State.

TOURISM :- Tourism, which has vast employment
potential in the State, will continue to receive due priority from the
Government particularly in the field of development of tourist
infrastructure and tourist spots. Based on the report of the Task Force
commissioned by the Government of India, a strategy for tourism development has
been prepared. A new Yatri Niwas at Jowai and a Tourist Lodge at Nongstoin are
awaiting sanctions of the Government of India. Persistent efforts by the
Department for upgradation of the Airport at Umroi have resulted its inclusion
in the Prime Minister's package for the North East. A Hotel Management
Institute is being set up by the Government of India in Shillong to create
a pool of trained personnel for management of hotels and tourism industry. As a
significant step the Government has declared tourism as an industry to attract
investment.

TRANSPORT :- The Meghalaya Transport Corporation is
continuing its operation on 39 routes covering the distance of 5265 Kilometers
with a fleet of 191 Buses. During the year 1996-97 the Corporation has carried
14.23 lakh passengers and covered 45.80 lakhs Kilometres. The revenue earning of
the Corporation in 1996-97 was Rs. 396.68 lakh as against Rs. 366.94 lakh in
1995-96.

PUBLIC WORKS :- An adequate and efficient surface
transport infrastructure is essential for development of the economy. The State
has a total road length of 6707.094 Km with a road density of 29.90 Km/100 Sq.Km.
which is below the prescribed norms of 40 Km/100 Sq.Km in Hill areas. Of 5629
numbers of villages, 2486 numbers have been connected by road. To link the
uncovered villages, higher allocation under Basic Minimum Services is
required.

During 1997-98
which is the first year of the Ninth Plan, this sector has an approved outlay of
Rs. 6420.00 lakhs. A tentative outlay of Rs. 7500.00 lakhs for 1998-99 has been
proposed.

The schemes under
National Highway for the current year include (i) Improvement -26.00 Km (ii)
Widening - 24.00 Kms and (iii) Construction of 6 nos. of Bridges.

Under the Medium
Irrigation and Flood Control scheme, a tentative outlay of Rs. 450.00 lakhs and
Rs. 300.00 lakhs has been proposed for 1998-99 respectively. Construction
of barrage under Rongai valley irrigation project is in progress. The
target expected to be completed in 1999-2000. Three numbers of flood protection
works have been taken up in 1997-98.

The Building Wing
of Public Works Department has taken up a total number of 457 schemes with a
budget allocation of Rs. 1271.00 lakhs during 1997-98.

PUBLIC HEALTH ENGINEERING :- Under Urban Water
Supply Schemes, the construction of Dam at river Umiew at an approximate cost of
Rs. 36.00 crores has been started in October, 1997. Augmentation of Tura Phase
II Project is likely to be commissioned by 1997-98.

Provision of safe
and potable drinking water supply to the population is an extremely important
ingredient in the quality of life. Of 7678 numbers of habitations, 5531 numbers
are fully covered, 1874 numbers are partially covered and 511 are yet to be
covered. An outlay of Rs.2975,00 lakhs has been made during the current year and
of which Rs. 1100.00 lakhs, is earmarked under Basic Minimum
Services. Besides, Rs. 568.00 lakhs are available under Accelerated Rural Water
Supply Programme.

URBAN AFFAIRS :- Works for construction of
parking lot opposite Meghalaya Cooperative Apex Bank and near Laitumkhrah
Market at Shillong are likely to be completed soon. Land for construction of
parking lot near Khasi Hills District Council Office has been acquired and work
being initiated during 1998-99. Efforts are being made to construct a parking
lot-cum-shopping complex at Old Civil Hospital, Khyndai Lad.

The new Shillong
Township Project is in progress and external aid is being sought through the
Government of India for funding the project. A new scheme, Swarna Jayanta
Shahari Rozgar Yojana is being introduced from 1st January, 1997.

HOUSING :- With the adoption of the Meghalaya
State Housing Policy on 29.4.88 special effort has been made to assist the
Economically Weaker Section/Low Income Group houseless people especially in the
rural areas. A loan-cum-subsidy scheme for the Economically Weaker Section/Low
Income Group people was implemented from 1988-89 to 1993-94. Government is also
providing Grant-in-aid under Basic Minimum Services programme of rural housing
scheme in the form of three bundles of C.G.I sheet to poor rural houseless
who are willing to construct structures upto roof level. The
scheme has been implemented since 1981-82 under which 8708 families were covered
upto 1996-97. During 1998-99 a tentative outlay of Rs. 700 lakhs is made for
housing sector

HEALTH AND FAMILY WELFARE :- To Government has
accorded high priority to the upgradation, expansion and consolidation of
health infrastructure for ensuring full coverage of the rural population by the
Primary Health Centre system and during 1997-98 construction of 8 Community
Health Centres, 22 Primary Health Centres and 10 Health Sub-Centres have been
completed. Once these are made functional, the State will have 21
functioning Community Health Centres, 103 Public Health Centres and 436
Health Sub-Centres in the State. In terms of the recommendation of the Shukla
Commission, 15 additional Community Health Centres are to be established of
which construction of 6 Community Health Centres has been projected in
1997-98. During the current year, several schemes such as the
establishment of a State Institute for training of health workers and para-medical
personnel, a centre for research and adaptation of traditional and local system
of medicines have been taken up. Construction of the Out Patient
Department complex at Shillong Civil Hospital have been completed and will be
commissioned soon. A centrally Sponsored Scheme on Reproductive and Child Health
Project has been sanctioned under the World Bank Aided programme with an outlay
of Rs. 32.70 crores which will be implemented over a period of 5 years
from 97-98. An allocation of Rs. 317 lakhs has been made in 97-98 under this
project which will provide improved health care, child health care and maternity
facilities to upgrade the health cover of women in reproductive age and
the children particularly in the rural areas. The National Aids Control
Programme has been implemented as well as the National Iodine Deficiency
and Disorder Programme. The Orthopedic and Rehabilitation Centre at Shillong
Civil Hospital will be upgraded in a phased manner with the assistance
from the North Eastern Council. It may be mentioned that though some of
the indicators of effectiveness of health programme such as life expectancy,
crude birth and death rates show improvement, there is a lot to improve in the
quality of health services being made available to our population. The
Department will direct its efforts to this vital aspects.

SOCIAL WELFARE :- Implementation of scheme for
Welfare of women, children, physically handicapped, Juvenile
delinquents, aged and infants are the main activities of Social Welfare
Department.

There are 30
Integrated Child Development Services Projects implemented in 30 Community
Development blocks through 2025 Anganwadi centres. Two more projects at
Ranikor and Trikrikilla Community Development Blocks have been sanctioned by
Government of India. 835 needy children are provided with food, clothing,
shelter and education through 24 voluntary organizations. Three training centres
for self employment of women at Shillong, Tura and Jowai continue to impart
training to 105 women in various trade. Under Integrated Child
Development Service scheme 102,862 beneficiaries have been covered under
special nutrition programme. These schemes will be intensified in 1998-99.

EDUCATION :- Education will continue to receive high
priority of the Government. The proposed outlay for 1998-99 is Rs. 3500.00 lakhs
out of which the Basic Minimum Services component is Rs. 2400.00 lakhs for
universal primary education.

The strategy of
the Annual Plan is to achieve the basic objectives of the 9th Plan to provide
(a) free elementary education and compulsory education to all children below 14
years of age (b) access to secondary education and improvement in its quality
and (c) consolidation of the existing facilities on higher education, adult
education, and teachers training. On technical education and teachers training.
On technical education side, the only polytechnic in the State will
receive more allocation for improving and modernizing the existing facilities so
that the infrastructure is fully utilized. To streamline the administration of
education and to equip it for the challenges of the 21st century the Department
have reorganized the Directorate of Public Instructions by
establishing three Directorates viz. Directorate of Higher and Technical
Education, Directorate of Elementary and Mass Education and the Directorate of
Education, Research and Training.

SPORTS AND YOUTH AFFAIRS :- The Department have
various schemes for promotion of sports and games and to develop sports
infrastructure at village, Block and State levels in a phased manner. During
1997-98, 170 numbers of Sports Association/Clubs have been given financial
assistance (i) for conduct of sports in different disciplines (ii) for
improvements of play ground in all districts (iii) for participation in
the National, Regional and State level competitions. The second phase of
construction of the Jawaharlal Nehru Sports complex at Polo Ground, Shillong has
been started and is expected to be completed within 1998. To ensure
participation of youth in constructive activities. Chief Minister's Youth
Development Programme has been implemented through the Deputy Commissioners.

ARTS AND CULTURE :- The Department of Arts and Culture
has taken steps to build infrastructure for preserving and promoting the
arts and culture of the different communities of Meghalaya. The new Museum at
Shillong has been commissioned. A project to build cultural complexes at
Shillong and Tura is under way. In 1997, the Department hosted the Annual Art
History Congress meet at Shillong. Research infrastructure is being
strengthened. The Department is also considering an innovative project for
preserving traditional art forms by declaring leading exponents of these art
forms as 'living heritage'.

DISTRICT COUNCIL AFFAIRS :- The Government
ahs been providing aid to District Councils for construction of village roads,
footpaths, Councils' own office, bridges and markets. As total amount of Rs.
450.00 lakhs has been provided in 97-98 for these works and the same amount has
been proposed in 98-99.

BORDER AREAS :- To improve the economic
conditions of the people residing in the Border areas, who have been facing
hardships due to disruption of traditional trade with Bangladesh, several
schemes through different Departments have been taken up. Under agriculture
loan-cum-subsidy schemes an amount of Rs. 19.00 lakhs have been proposed
in 1998-99 for supply of small tractors, power tillers and power pumps. A drip
irrigation project for horticulture at an estimated cost of Rs. 15.00 lakhs
during 1988-99 will be implemented. In addition to this, a substantial amount
has been projected under Education, Cooperation, Roads and Bridges for overall
improvement of social and physical infrastructure of the border areas.

FOOD & CIVIL SUPPLIES AND CONSUMERS AFFAIR :-
Government has fulfilled its promise of supplying subsidized food grains to the
people of Meghalaya. At present rice, wheat (atta) and levy sugar are
distributed to the consumers through a net work of 582 fair price shops in urban
areas and 3276 fair price shops in rural areas. Special kerosene oil is
distributed both by the agents appointed by oil companies and the
sub-agents appointed by Deputy Commissioners and Sub Divisional Officers.
Various control orders have been issued under the Essential commodities Act. The
Consumers Protection Act have been implemented in the State from the year
1987. The Department have constituted the State Consumer Protection
Council and consumer disputes, redressal agencies at the State and the District
level. 60 cases of consumer dispute have been registered with the State
Commission and 185 cases with the District forum. Of these 34 and 144 cases have
been disposed of by these bodies respectively. Under the mobile shops scheme 14
vans are used as mobile shop for distribution of essential commodities in the
interior areas.

POLITICAL AND HOME (POLICE) :- During 1997, the law
and order situation remained largely peaceful, barring a few incidents of
communal disharmony at Nongmynsong, Shillong during February-April, 1997; at
Thum village, Shella in November-December, 1997 and at Mohandraganj in October,
1997 which were firmly brought under control by the administration with
the cooperation of the local people. The Government will continue its efforts to
maintain social harmony and prevent breach of peace. A monthly review of anti
infiltration work is being carried out which yielded a good result. About
2869 Bangladeshi nationals have been detected and deported during the year.
There are reports of an increase in cases of extortion, dacoity and burglary. To
effectively contain this menace, Highway and City Mobile patrols in all
Districts have been introduced.

GENERAL ADMINISTRATION :- The activities of General
Administration Department have increased with the implementation of various
schemes, viz., setting up of the Meghalaya House at Guwahati, construction of
2nd Meghalaya House at Calcutta and the construction of Integrated Office
Complex at Nongpoh, construction of administrative building at Old
Transport compound at Shillong, construction of 3rd Secretariat Building (2nd
Phase and 3rd Phase), construction of residential quarters for officers and
staff in Shillong etc. A tentative outlay of Rs. 400.00 lakhs has been allocated
for 1998-99.

HOME (JAIL) :- The Planning Commission has extended
plan assistance of Rs. 150.00 lakhs during 1997-98. Proposals for
strengthening and upgrading the security system in all the District Jails in
phased manner will be taken up. Strengthening of the medical care and jail
services will continue. The Central Government have allocated Rs.113.00 lakhs on
sharing basis during 1996-97 for modernization of prison administration.
However, the central fund of Rs.11.00 lakhs only has been utilized. The unspent
balance has been revalidated by the Government of India and being utilized
during 1997-98. The Government also proposed construction of District jails at
Nongstoin, Nongpoh and Baghmara during the 9th Plan.

ADDITIONAL RESOURCE MOBILISATION :- During the
official level discussions with Planning Commission the State's resources for
Annual Plan 1998-99 were assessed at Rs. 301.54 crores. Normally
this is followed by a meeting at the level of Deputy Chairman Planning
Commission and the Chief Minister to finalise the Plan size including additional
Resource Mobilisation by the State. Because of Elections to Lok Sabha, this
exercise could not be done and may take place soon and hence the outlay of
Annual Plan 1998-99 at Rs. 400.00 crores reflected in the Budget Estimates
is tentative and subject to finalisation by the Planning Commission. to have an
Annual Plan size of Rs. 400.00 crores, the Government will have to mobilize
additional resource and carry out economy measures to bridge the resource gap.
Once the actual quantum of Additional Resource Mobilisation is decided,
proposals will be prepared by the concerned departments for presentation in the
next session of the Assembly when there will be a full discussion on the Budget.
I would like to mention that by adopting Additional Resource Mobilisation, the
Government would like to convey to the Central Government that it will be making
earnest efforts to raise resources for development and to reduce the degree of
dependence on the centre.

Pay Revision and upgradation of administration
under the Tenth Finance Commission

Award :- A major decision of the Government in
1997-98 has been to implement the Pay Revision with effect from 1.1.96 based on
the recommendation of the Third Meghalaya Pay Commission and improvement made
thereon by the Empowered Committee appointed by the Government. This
has benefited all Government Employees including teachers of Government Aided
Institutions. The Government has released installments of Dearness Allowance due
upto 1.7.97. Since the Tenth Finance Commission left the cost of Pay Revision
and Dearness Allowance to the States, the State has to bear the entire cost
which may run into Rs. 80 crores approximately in 1997-98 and Rs. 133 crores in
1998-99 including Dearness Allowance. This will put a severe pressure on the
States Finances and points to the need for raising additional resources and
austerity measures.

From 1997-98
, the State has taken up schemes funded by the Tenth Finance Commission for
upgradation of administration. This includes construction of Yojana Bhavan
adjacent to Main Secretariat Building, Police Outposts, extension of Third
Secretariat etc and computerization of Treasuries. I attach much
importance to the last scheme for which Rs. 50 lakhs has been provided. In
1997-98, Rs. 20.00 lakhs has been placed with the National Informatics Centre
for procurement of Computer hardware. I am happy to State that computerization
has already been introduced at Shillong South Treasury. Once all the treasuries
are covered, the Finance Department would be able to monitor transactions on
daily basis particularly large payments which is essential for sound financial
management.

ACTUAL 1996-97 :- During 1996-97 receipt on all
accounts were Rs. 4310.96 crores while the expenditure were of the order
of Rs. 4299.27 crores resulting in the surplus of Rs. 11.69 crores, together
with the negative cash balance of Rs. 70.87 crores, the year closed with a
deficit of Rs. 59.19 crores.

REVISED ESTIMATES 1997-98 :- The year 1997-98 opened
with a negative cash balance of Rs. 59.18 crores. The Revised Estimates for
1997-98 shows a total receipts of Rs. 4734.90 crores on all accounts and a total
expenditure of Rs. 4748.66 crores leaving a deficit of Rs. 13.76 cores and
together with a negative opening balance of Rs. 59.18 crores, the year is
estimated to close with a negative balance of Rs. 72.94 crores.

BUDGET ESTIMATES 1998-99 :- I now come to the
Budget estimates for 1998-99. The year 1998-99 is expected to open with a
negative cash balance of Rs. 72.94 crores. The Revenue Receipts are placed
at Rs. 961.85 crores and the Revenue Expenditure is estimated at Rs.
910.92 crores, thus leaving a surplus of Rs. 50.93 crores. Outside the
revenue account, the receipts are estimated at Rs. 3921.91 crores
and the expenditure is estimated at Rs. 4065.11 crores resulting in a deficit of
Rs. 143.20 crores and thus the surplus of Rs. 50.53 crores on the
revenue account will be wiped out and the deficit will stand reduced to Rs.
92.27 crores. However taking into account the negative opening cash balance of
Rs. 72.94 crores, the year will close with the estimated deficit of Rs. 165.21
crores. The broad details are indicated at Annexure-II

With these
words, Sir I present the Budget Estimates for 1998-99 before this august House
for consideration and approval. However, to enable the Government to carry on
with its duties and defray expenditure from the first day of the financial
year 1998-99, I propose that the House may grant a Vote-on-Account.